Question

Find the future value of $3000 invested at 6% p.a interest compounded half-yearly for 4 years

Answer 1

F=$3810

Explanation:

`F=P(1+i)^(n)`

F= future value

P= present value

i = interest

n= number of times money compounded

P=$3000 i=6% n = 2 X 4= 8

As this is semiannual so 6%/2=3%

`F=P(1+0.03)^(8)`

`F=3000(1.03)^(8)`

`F=3000(1.267)`

`F=3810`